Response to the following problem:
For each of the following separate cases, compute cash flows from operations. The list includes all balance sheet accounts related to operating activities.
Case A Case B Case C
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000 $125,000 $105,000
Depreciation expense . . . . . . . . . . . . . . 60,000 16,000 48,000
Accounts receivable increase (decrease) . . . . . . 80,000 40,000 (8,000)
Inventory increase (decrease) . . . . . . . . . . . . (40,000) (20,000) 21,000
Accounts payable increase (decrease) . . . . . 28,000 (44,000) 16,000
Accrued liabilities increase (decrease) . . . . . . . . (88,000) 10,000 (16,000)